Answer:
2.505 Years
Explanation:
Payback calculates the amount of time it takes to recover the amount invested in a project from it cumulative cash flows
cash flow = ne income + depreciation
Straight line depreciation expense = (Cost of asset - Salvage value) / useful life
60,000 / 5 = $12,000
Cash flows :
Year 1 = 15900
Year 2 = 21900
Year 3 = 44,000
Amount recovered in year 1 = $-60,000 + 15900 = -44,100
Amount recovered in year 2 = -44,100 + 21900 = -22.200
Amount recovered in year 3 = - 22,200 + 44,000 = 21800
payback = 2 years + 22,200 /44,000 = 2.505 years
Answer:
$159
Explanation:
Calculation to determine the service cost component of pension expense for the year ended December 31.
Projected benefit obligation, December 31 555
Add Benefit payments to retirees, December 31
Less Interest cost $54
(12%*450)
Less Projected benefit obligation, January 1 $450
service cost $159
Answer:
last
equal
Explanation:
A profit maximising producer would produce up to the point where the marginal product of the last unit of factor employed equals the factors price.
After, this point is reached, diminishing returns sets in
Answer:
<em>Run a recoverability test and then a fair value test.</em>
Explanation:
Business assets with a loss of value are subject to impairment tests to assess and identify the magnitude of the loss.
<em>Measuring the magnitude of the loss requires two steps:</em>
- Performing a recoverability check is to decide whether an impairment loss occurred by determining whether the future value of the undiscounted cash flows of the asset is less than the asset's book value. If the cash flow is less than the value of the book, the loss will be assessed.
- Measure the cost of damage by measuring the difference between the book value and the asset's market value.
Answer:
All of the above
Explanation:
A simple deposit multiplier is the quantity of cash kept in reserve by a bank. It is said to be percentage of the amount in deposit at the bank. If the bank has a deposit multiplier of 20%, it then means that the bank must be able to keep $100 in reserve for every $500 they have in their deposits. Then investors can access the remaining $400 available as bank loans.
